Currently, FDI in multi-brand retail is prohibited in India. However, the government allows 51% FDI in single-brand retailing and 100% in wholesale trade
Making out a strong case for opening up the multi-brand retail sector for foreign investment, the industry ministry today sought the views of different stakeholders asking whether foreign direct investment (FDI) in the sector should be permitted, reports PTI.
"FDI in retail may... be an efficient means of addressing the concerns of farmers and consumers... Opening FDI in retail could also assist in bringing technical know-how to set up efficient supply chains, which can act as models of development," the Department of Industrial Policy and Promotion (DIPP) said in a discussion paper on the politically sensitive issue.
"It would also... assist in lowering consumer prices/inflation," it said.
The ministry has sought stakeholders' comments by 31st July.
At present, FDI in multi-brand retail is prohibited in India. However, the government allows 51% FDI in single brand retailing and 100% in wholesale trade.